House purchase activity ‘dropped sharply’ at end of 2021

Noye added that any deposit for a house will be “continually eroded” by inflation reducing people’s spending power.

Prior to the Ukraine-Russia conflict, the Bank of England predicted inflation to peak at 7.25 per cent in April. “But the war may cause it to go higher and stay that way for longer,” said Noye.

ruby.hinchliffe@ft.com